Jensen Huang announced a "revolutionary" chip collaboration: Intel provides x86, NVIDIA contributes GPU, and Taiwan Semiconductor is responsible for foundry
NVIDIA CEO Jensen Huang announced that Taiwan Semiconductor will provide foundry support for the "revolutionary" chips produced in collaboration between NVIDIA and Intel. This partnership will focus on creating custom CPUs for data centers and personal computing, integrating NVIDIA's GPUs. NVIDIA is investing $5 billion in Intel, aiming to combine their technologies and explore approximately $50 billion in market opportunities. Jensen Huang emphasized that this collaboration will not affect the relationship with Arm and clarified that the Trump administration was not involved in this deal
According to the Zhitong Finance APP, Jensen Huang, CEO of NVIDIA (NVDA.US), announced at a press conference on Thursday that Taiwan Semiconductor (TSM.US) will provide foundry support for the "revolutionary" chips produced in collaboration between NVIDIA and Intel (INTC.US). This cooperation will focus on creating customized CPUs that can access NVIDIA's artificial intelligence ecosystem for data centers while simultaneously advancing innovation in personal computing.
Jensen Huang emphasized that Taiwan Semiconductor, as a world-class foundry, possesses world-class foundry magic, and the collaboration between NVIDIA and Intel will revolve entirely around this goal—integrating NVIDIA's NVLink technology to deeply merge artificial intelligence and accelerated computing capabilities with Intel's x86 architecture, creating customized products for the data center and PC markets.
Intel CEO Pat Gelsinger stated that both parties will continue to maintain close cooperation with Taiwan Semiconductor and will keep evaluating the future usability of the 14a and 18a processes.
As a key aspect of the collaboration, NVIDIA is investing $5 billion in Intel, and both parties plan to combine Intel CPUs with NVIDIA GPUs to develop products aimed at the data center and personal computer markets.
Jensen Huang pointed out that this collaboration will create customized chips that integrate top-tier CPUs and GPUs, particularly in the laptop sector, where tight integration of CPUs and GPUs through NVLink will open up market opportunities worth approximately $50 billion annually—of which the data center CPU market is valued at $25 billion, and annual sales of PC laptops are about 150 million units.
He specifically emphasized that this collaboration will not affect NVIDIA's partnership with Arm (ARM.US), and the company will continue to advance the Arm roadmap.
Regarding the background of the collaboration, Jensen Huang clarified that the Trump administration was not involved in this deal, but U.S. Secretary of Commerce Gina Raimondo expressed excitement about the collaboration between the two American companies. Analysts believe that this collaboration is significant for Intel, but the company still needs to prove that it has regained its status as a chip manufacturing powerhouse.
Julian Lin, head of the Best Growth Stock Investment Group, pointed out that NVIDIA's investment reflects trust in Intel and may help it return to profitability, but Intel still needs to demonstrate more substantial progress.
Jonathan Weber, head of the Cash Flow Club, believes that the alliance between NVIDIA and Intel will pose competitive pressure on AMD (AMD.US), although Taiwan Semiconductor may allocate some foundry business to Intel in the future, its leading position in the manufacturing industry remains solid for now
